acct115l_project09 preparation of cashflow statement of three company King's College Fall 2017 ACCT115L, Project 09 Balance Sheet and Income Statement Information Required to Complete Statement of Cash Flows [Note: To complete the project, see the in

acct115l_project09   

preparation of cashflow statement of three company 

King's College

Fall 2017

ACCT115L, Project 09

Balance Sheet and Income Statement Information Required to Complete Statement of Cash Flows

[Note:  To complete the project, see the instructions that were separately provided.]

2017 2016 2017

Assets: Revenue and Gross Profit:

Current Assets:   Sales Revenue, net . . . . . . . . . . . . 575,000 $                    

  Cash and Cash Equivalents . . . . . . . . .  12,500 $             13,000 $               Cost of Goods Sold . . . . . . . . . . . . 450,000                       

  Accounts Receivable (net) . . . . . . . . . . . . 88,000 77,000     Gross Profit . . . . . . . . . . . . . . . . .  125,000 $                    

  Inventory . . . . . . . . . . . . . . . . . . . . . . .  99,000 87,000

  Prepaid Expenses . . . . . . . . . . . . . . . . .  7,500 5,000 Operating Expenses:

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 207,000 $          182,000 $            Admin. Salaries and Wages . . . . . . 31,000 $                      

  Selling Expenses . . . . . . . . . . . . . . 29,300                         

Property, Plant and  Equipment:   Utilities . . . . . . . . . . . . . . . . . . . . .  12,000                         

  Equipment . . . . . . . . . . . . . . . . . . . . . . . 172,000 $          161,000 $            Depreciation Expense . . . . . . . . . . 15,000                         

  Buildings and Land . . . . . . . . . . . . . . . . 69,000 66,000   Travel, Interest, and Other Exp. . . 7,700                            

  Less: Accumulated Depreciation . . . . . (113,000) (102,000)     Total Operating Expenses . . . .  95,000 $                      

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 128,000 $          125,000 $         

  Net Operating Income . . . . . . . . .  30,000 $                      

  Total Assets . . . . . . . . . . . . . . . . . . . . . 335,000 $          307,000 $         

  Gain on sale of equipment . . . . . .  500                               

Current Liabilities:

  Accounts Payable . . . . . . . . . . . . . . . . . 62,500 $             68,000 $             Net Income before income taxes 30,500 $                      

  Income Tax Payable . . . . . . . . . . . . . . .  5,000 11,000

  Wages Payable . . . . . . . . . . . . . . . . . . . 8,500 6,000   Income tax expense . . . . . . . . . . .  (12,500)                        

      Total . . . . . . . . . . . . . . . . . . . . . . . .  76,000 $             85,000 $            

Net income . . . . . . . . . . . . . . . . . . .     18,000 $                      

Long-Term

  Liabilities: Additional information relating to transactions that

  Notes Payable . . . . . . . . . . . . . . . . . . . 55,000 $             40,000 $             occurred during 2017:

  Sold equipment that had an original cost of $4,000

  Total Liabilities . . . . . . . . . . . . . . . . . .  131,000 $          125,000 $             and a book value of $0, for $500 cash.

Owners’ Equity:   Acquired equipment costing $15,000, paying for it by

  Common Stock . . . . . . . . . . . . . . . . . . .  36,000 $             26,000 $                 the issuance of a long-term note.

  Additional Paid-in Capital . . . . . . . . . . . 10,000 10,000

  Retained Earnings . . . . . . . . . . . . . . . .  158,000 146,000   Purchased a parcel of land for $3,000 cash.

  Total Owners’ Equity . . . . . . . . . . . . .     204,000 $          182,000 $            Issued 10,000 shares of common stock, par value $1.00

  per share, for cash, no premium.

  Total Liabilities and Owners' Equity      335,000 $          307,000 $         

  Paid dividends totaling $6,000 during the year.

Chestnut Company

Income Statement 

For the Year Ended December 31, 2017

Chestnut Company

Balance Sheet 

As of December 31, 2016 and 2017

R. Schwanger

November 20, 2017

King's College

Fall 2017

ACCT115L, Project 09

Balance Sheet and Income Statement Information Required to Complete Statement of Cash Flows

[Note:  To complete the project, see the instructions that were separately provided.]

2017 2016 2017

Assets: Revenue and Gross Profit:

Current Assets:   Sales Revenue, net . . . . . . . . . . . . 412,500 $                    

  Cash and Cash Equivalents . . . . . . . . .  4,500 $               5,500 $                 Cost of Goods Sold . . . . . . . . . . . . 225,000                       

  Accounts Receivable (net) . . . . . . . . . . . . 39,200 44,000     Gross Profit . . . . . . . . . . . . . . . . .  187,500 $                    

  Inventory . . . . . . . . . . . . . . . . . . . . . . .  70,000 55,000

  Prepaid Rentals . . . . . . . . . . . . . . . . .  5,000 10,000 Operating Expenses:

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 118,700 $          114,500 $            Admin. Salaries and Wages . . . . . . 22,500 $                      

  Selling Expenses . . . . . . . . . . . . . . 40,000                         

Property, Plant and  Equipment:   Utilities . . . . . . . . . . . . . . . . . . . . .  12,000                         

  Equipment . . . . . . . . . . . . . . . . . . . . . . . 31,500 $             36,200 $               Depreciation Expense . . . . . . . . . . 22,500                         

  Buildings and Land . . . . . . . . . . . . . . . . 342,800 342,800   Travel, Interest, and Other Exp. . . 9,700                            

  Less: Accumulated Depreciation . . . . . (123,000) (104,500)     Total Operating Expenses . . . .  106,700 $                    

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 251,300 $          274,500 $         

  Net Operating Income . . . . . . . . .  80,800 $                      

  Total Assets . . . . . . . . . . . . . . . . . . . . . 370,000 $          389,000 $         

  Loss on sale of equipment . . . . . .  (400)                              

Current Liabilities:

  Accounts Payable . . . . . . . . . . . . . . . . . 40,000 $             53,100 $             Net Income before income taxes 80,400 $                      

  Income Tax Payable . . . . . . . . . . . . . . .  15,000 12,500

  Wages Payable . . . . . . . . . . . . . . . . . . . 5,000 9,900   Income tax expense . . . . . . . . . . .  (28,000)                        

      Total . . . . . . . . . . . . . . . . . . . . . . . .  60,000 $             75,500 $            

Net income . . . . . . . . . . . . . . . . . . .     52,400 $                      

Long-Term

  Liabilities: Additional information relating to transactions that

  Notes Payable . . . . . . . . . . . . . . . . . . . 15,000 $             95,000 $             occurred during 2017:

  Total Liabilities . . . . . . . . . . . . . . . . . .  75,000 $             170,500 $            Sold equipment that had an original cost of $4,700

   and a book value of $700, for $300 cash.

Owners’ Equity:

  Common Stock . . . . . . . . . . . . . . . . . . .  145,000 $          120,000 $            Paid off note payable of $80,000 on December 1, 2017.

  Additional Paid-in Capital . . . . . . . . . . . 60,000 40,000

  Retained Earnings . . . . . . . . . . . . . . . .  90,000 58,500   Issued 25,000 shares of common stock, par value $1.00

  per share, for $45,000 cash, including premium.

  Total Owners’ Equity . . . . . . . . . . . . .     295,000 $          218,500 $         

  Paid dividends totaling $20,900 during the year.

  Total Liabilities and Owners' Equity      370,000 $          389,000 $         

Oak, Inc.

Income Statement 

For the Year Ended December 31, 2017

Oak, Inc.

Balance Sheet 

As of December 31, 2016 and 2017

R. Schwanger

November 20, 2017

King's College

Fall 2017

ACCT115L, Project 09

Balance Sheet and Income Statement Information Required to Complete Statement of Cash Flows

[Note:  To complete the project, see the instructions that were separately provided.]

2017 2016 2017

Assets: Revenue and Gross Profit:

Current Assets:   Sales Revenue, net . . . . . . . . . . . . 500,000 $                    

  Cash and Cash Equivalents . . . . . . . . .  25,000 $             12,980 $               Cost of Goods Sold . . . . . . . . . . . . 220,000                       

  Accounts Receivable (net) . . . . . . . . . . . . 19,000 22,600     Gross Profit . . . . . . . . . . . . . . . . .  280,000 $                    

  Inventory . . . . . . . . . . . . . . . . . . . . . . .  52,000 49,000

  Prepaid Insurance . . . . . . . . . . . . . . . . .  7,000 4,100 Operating Expenses:

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 103,000 $          88,680 $               Admin. Salaries and Wages . . . . . . 54,400 $                      

  Selling Expenses . . . . . . . . . . . . . . 50,000                         

Property, Plant and  Equipment:   Utilities . . . . . . . . . . . . . . . . . . . . .  19,000                         

  Equipment . . . . . . . . . . . . . . . . . . . . . . . 31,500 $             36,200 $               Depreciation Expense . . . . . . . . . . 12,000                         

  Buildings and Land . . . . . . . . . . . . . . . . 385,500 385,500   Travel, Interest, and Other Exp. . . 15,000                         

  Less: Accumulated Depreciation . . . . . (111,800) (104,500)     Total Operating Expenses . . . .  150,400 $                    

      Total . . . . . . . . . . . . . . . . . . . . . . . . . 305,200 $          317,200 $         

  Net Operating Income . . . . . . . . .  129,600 $                    

  Total Assets . . . . . . . . . . . . . . . . . . . . . 408,200 $          405,880 $         

  Gain on sale of equipment . . . . . .  3,300                            

Current Liabilities:

  Accounts Payable . . . . . . . . . . . . . . . . . 43,000 $             29,850 $             Net Income before income taxes 132,900 $                    

  Income Tax Payable . . . . . . . . . . . . . . .  8,520 13,350

  Wages Payable . . . . . . . . . . . . . . . . . . . 13,000 12,000   Income tax expense . . . . . . . . . . .  (39,900)                        

      Total . . . . . . . . . . . . . . . . . . . . . . . .  64,520 $             55,200 $            

Net income . . . . . . . . . . . . . . . . . . .     93,000 $                      

Long-Term

  Liabilities: Additional information relating to transactions that

  Notes Payable . . . . . . . . . . . . . . . . . . . 20,000 $             120,000 $          occurred during 2017:

  Total Liabilities . . . . . . . . . . . . . . . . . .  84,520 $             175,200 $            Sold equipment that had an original cost of $4,700

   and a book value of $0, for $3,300 cash.

Owners’ Equity:

  Common Stock . . . . . . . . . . . . . . . . . . .  80,000 $             55,000 $               Paid off note payable of $100,000 on December 1, 2017.

  Additional Paid-in Capital . . . . . . . . . . . 60,000 40,000

  Retained Earnings . . . . . . . . . . . . . . . .  183,680 135,680   Issued 25,000 shares of common stock, par value $1.00

  per share, for $45,000 cash, including premium.

  Total Owners’ Equity . . . . . . . . . . . . .     323,680 $          230,680 $         

  Paid dividends totaling $45,000 during the year.

  Total Liabilities and Owners' Equity      408,200 $          405,880 $         

Spruce Enterprises

Income Statement 

For the Year Ended December 31, 2017

Spruce Enterprises

Balance Sheet 

As of December 31, 2016 and 2017

R. Schwanger

November 20, 2017